The slope of a production possibilities frontier
A) is always varying.
B) measures the opportunity cost of producing one more unit of a good.
C) has no economic relevance or meaning.
D) is always constant.
B
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Economists often refer to games with more than three players as
A) complex games. B) n-player games. C) games of infinity. D) global games.
Is a firm technologically efficient if it uses the latest technology? Why or why not?
What will be an ideal response?
Assume a firm has the following cost and revenue characteristics at its current level of output: price=$10.00 . average variable cost=$8.00 and average fixed cost =$4.00 . This firm is
a. incurring a loss of $2.00 per unit and should shut down. b. realizing only a normal profit. c. realizing an economic profit of $2.00 per unit. d. incurring a loss per unit of $2.00 . but should continue to operate in the short run.
Open and explicit agreements concerning pricing and output shares transform an oligopoly into a
A. Differentiated oligopoly. B. Monopoly. C. Perfectly competitive firm. D. Cartel.